Wall Street showed signs of caution Wednesday morning as investors digested China’s latest economic stimulus measures ahead of upcoming US-China trade talks, while mixed earnings and tariff concerns continued to pressure major indices.
📊 Stock Market Update: Wall Street Wavers
As of 11:07 a.m. Eastern, the S&P 500 index was largely flat, while the Dow Jones Industrial Average gained 147 points (0.4%). The Nasdaq Composite dipped 0.3%, weighed down by declines in tech giants Google (-3.8%) and Apple (-1.8%).
Overall, most S&P 500 stocks traded in positive territory, but heavy losses in the technology sector curbed broader gains.
📈 Disney Surges, Tech Falters
The Walt Disney Company delivered a bright spot for investors, jumping 10.8% after exceeding earnings forecasts, raising profit guidance, and reporting over a million new streaming subscribers. The entertainment sector remains in focus as analysts weigh the broader impact of tariffs on consumer discretionary spending.
In contrast, Super Micro Computer dropped 5.3% after revising down its full-year revenue outlook due to economic uncertainty, while Marvell Technology fell 11.2% after postponing its investor day.
🔍 US-China Trade Talks in Focus
Investors are closely watching for outcomes from high-level US-China trade talks scheduled this weekend in Switzerland. The Biden administration’s steep tariffs—currently at 145% on Chinese goods—combined with China’s 125% retaliatory tariffs, have raised economic alarm bells globally.
In response, the Chinese government is rolling out fresh economic stimulus, including interest rate cuts and liquidity measures, to shield its economy from further trade-related strain.
🇨🇳 China Economic Stimulus Measures
China’s central bank has announced rate cuts and reduced bank reserve requirements, aiming to support consumer activity and stabilize markets amid the escalating trade war. This comes as Chinese factory activity contracts and retail spending growth slows, prompting concerns about global economic spillover.
💼 Federal Reserve Holds Steady on Rates
Wall Street is also eyeing updates from the Federal Reserve, which is expected to maintain its benchmark interest rate. While the Fed cut rates three times in 2024, recent inflation data and the evolving trade environment have led to a more cautious stance. Fed Chair Jerome Powell emphasized the need to assess how tariffs may influence prices and economic momentum before taking further action.
📉 Tariff Fallout Hits Economic Indicators
The U.S. economy contracted at a 0.3% annual rate in Q1 2025, largely due to a record $140.5 billion trade deficit in March as imports surged ahead of tariff implementation. While U.S. employment remains strong, consumer confidence has declined in recent months, reflecting broader anxieties around inflation, trade, and economic growth.
💵 Treasury Market and Global Trends
The 10-year Treasury yield ticked down slightly to 4.28% from 4.30% the day prior, indicating stable investor sentiment despite trade and rate uncertainty.
European markets edged lower, while Asian equities advanced on optimism surrounding China’s stimulus measures.
